LONDON (ICIS)--After both opening in negative territory, Brent and WTI futures reset on the upside.
Despite the lingering trade dispute between the US and China, prices tracked a more bullish pattern in early European trading, registering the fact that China would exclude crude oil from its tariff hikes. The fears that surplus cargoes of US light oil might flood the market if China stopped to buy them was partly assuaged, leaving the market refocused on the Iranian supply situation.
In the meantime, a number of domestic currencies in emerging economies were seriously battered on Friday, in particular the Turkish lira, but also the Chinese yuan and the Indian rupee.
The crude oil response to the US dollar strength was a weakening contango further back the Brent forward curve.
In afternoon trading, futures remained bullish, still factoring in a tighter oil market and a mostly unchanged growth outlook in spite of the ongoing trade tensions.
The US weekly rig count showed that US drillers had added the most rigs since May, with 10 new rigs week on week.
Prices remained moderately bullish into the close but were on course to close lower week on week.
Additional reporting by Ignacio Sotolongo